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Personal Investments • Holding Place for Emergency Fund

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Looking to get some feedback and insight into what the best option may be for our emergency fund monies.

We are looking to place between 60-100k into a holding account where we can:
1) have relative safety - i.e., low risk of the account losing money
2) have relatively easy access to the money should we need it - i.e., be able to remove money quickly and without penalty
3) have the money earn decent interest while sitting in the account

Right now the money is just sitting in a savings account at a bank. The savings account has very low interest (.01).

We are mainly looking into:

1) Money market funds
2) Money market accounts

We are strongly considering a money market fund via vanguard, in part, because we already have accounts there so this would be easiest for us. Our main concerns are around the safety and ease of access for a MMF at Vanguard. A money market account seems, based on reading, potentially safer given the FDIC insurance. However, doing a MMA would require us to use a new vendor as our main bank (Chase) does not offer a MMA.

Hoping to get people's general thoughts on the above or any other ideas of where to place emergency fund to meet 1-3 above!

Statistics: Posted by Bigtelephone — Fri Apr 26, 2024 5:33 pm — Replies 4 — Views 140



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